Risks and Response Strategies in M&A of New Energy Enterprises: BYD's Acquisition of Jabil Circuit

Abstract

Contemporarily, new energy enterprises have developed rapidly and the momentum is flourishing, and the state has also introduced many relevant policies to support the development of new energy enterprises. Under the condition of multiple advantages, M&A has naturally become a hot area for the expansion of new energy enterprises, and the M&A market is increasingly active. But accordingly, the risk of merger and acquisition is becoming more and more prominent. Taking BYD's acquisition of Jabil Circuit as a case, this study makes an in-depth analysis of potential problems in the case of BYD's acquisition of Jabil based on literature review method, empirical research method and other research methods, discusses the risks brought by arbitrary changes in terms of agreement, increasing market competition and changing government policies in the merger and acquisition of new energy enterprises, and tries to sum up certain coping strategies as well as help more enterprises better predict risks and resist risks.